Minnesota Energy Rebate Income Guide (2026)
Your household income determines how much you can receive from federal energy rebate programs in Minnesota. This guide explains the income thresholds, what each bracket qualifies for, and how to estimate your eligibility.
Income Brackets for Energy Rebates in Minnesota
Both the HOMES and HEAR programs use Area Median Income (AMI) thresholds to determine rebate amounts. AMI varies by county and household size within Minnesota.
| Income Bracket | HEAR Rebates | HOMES Rebates | Total Potential |
|---|---|---|---|
| Low income ≤80% AMI |
Up to $14,000 (100% of cost) |
Up to $8,000 (80% of cost) |
Up to $22,000 |
| Moderate income 80-150% AMI |
Up to $7,000 (50% of cost) |
Up to $4,000 (50% of cost) |
Up to $11,000 |
| Above moderate >150% AMI |
Not eligible | May qualify (performance-based) |
Varies + utility rebates |
AMI Thresholds in Minnesota (Family of 4)
Here are the current AMI thresholds for major areas in Minnesota. Your specific threshold depends on your county and household size.
| Area | 80% AMI (Low Income Threshold) |
150% AMI (Moderate Income Cap) |
|---|---|---|
| Hennepin County (Minneapolis) | $105,200 | $197,200 |
| Ramsey County (Saint Paul) | $105,200 | $197,200 |
| Olmsted County (Rochester) | $106,800 | $200,200 |
| Stearns County (St. Cloud) | $85,700 | $160,700 |
| Blue Earth County (Mankato) | $85,200 | $159,800 |
| St. Louis County (Duluth) | $80,900 | $151,700 |
| Most non-metro counties (Beltrami, Cass, Crow Wing, Cook and others) | $78,400 | $147,000 |
Minnesota sets eligibility by county, not by metro area. The figures above are for a 4-person household and come from the Minnesota Department of Commerce 2026 Area Median Income look-up table, updated June 1, 2026. Thresholds rise with household size, are lower for smaller households, and are updated every year. Check your own county and household size in the official 2026 Area Median Income look-up table (PDF).
HEAR Rebates by Equipment Type in Minnesota
The HEAR program provides point-of-sale rebates for specific electrification upgrades. Here's what you can get for each eligible improvement:
| Equipment | Max Rebate | Low Income (≤80% AMI) | Moderate (80-150% AMI) |
|---|---|---|---|
| Heat Pump HVAC | $8,000 | 100% of cost | 50% of cost |
| Electrical Panel | $4,000 | 100% of cost | 50% of cost |
| Wiring Upgrade | $2,500 | 100% of cost | 50% of cost |
| Heat Pump Water Heater | $1,750 | 100% of cost | 50% of cost |
| Insulation & Air Sealing | $1,600 | 100% of cost | 50% of cost |
| Electric Stove/Cooktop | $840 | 100% of cost | 50% of cost |
| Electric Dryer | $840 | 100% of cost | 50% of cost |
| Maximum Total per Household | $14,000 | $14,000 | $7,000 |
HOMES Program Income Rules in Minnesota
The HOMES (Home Owner Managing Energy Savings) program works differently from HEAR. Instead of per-appliance rebates, it provides rebates based on whole-home energy savings:
| Income Level | Energy Savings Required | Max Rebate | Max Coverage |
|---|---|---|---|
| ≤80% AMI | 20%+ (measured) or 35%+ (modeled) | $8,000 | 80% of project cost |
| 80-150% AMI | 20%+ (measured) or 35%+ (modeled) | $4,000 | 50% of project cost |
| >150% AMI | 35%+ energy savings | $2,000-$4,000 | Performance-based |
A key advantage of HOMES: households above 150% AMI can still qualify if they achieve significant energy savings, unlike HEAR which has a hard income cutoff.
How to Stack Rebates in Minnesota
The most effective strategy is to combine multiple rebate sources. Here's what Minnesota residents can stack:
HEAR + HOMES
You can potentially use both programs on the same project, as long as the same improvement isn't double-counted. For example, use HEAR for the heat pump and HOMES for the overall retrofit.
Federal + Utility
Utility rebates from providers like Xcel Energy can be stacked with federal HOMES and HEAR rebates. Most have no income requirements.
Federal + State Programs
Minnesota Residential Heat Pump Rebates (state funded) and other state programs can typically be combined with federal rebates, though the total cannot exceed project cost.
Check Your Eligibility
Enter your state, income, and planned improvements to see exactly what you qualify for.
Use the CalculatorFrequently Asked Questions
What is Area Median Income (AMI) in Minnesota?
Area Median Income (AMI) is the midpoint of household incomes in a specific geographic area. In Minnesota, AMI varies by county and metro area. HUD calculates AMI annually for each area, and it is used to determine eligibility for HOMES and HEAR energy rebate programs.
How do I know if I qualify as low-income for energy rebates in Minnesota?
You qualify as low-income if your household income is at or below 80% of your area's median income (AMI). This threshold varies by location within Minnesota and household size. For example, in Hennepin County (Minneapolis), 80% AMI for a family of 4 is $105,200.
What rebates can moderate-income households get in Minnesota?
Moderate-income households (80-150% AMI) can receive up to $4,000 from the HOMES program (50% of project cost) and up to $7,000 total from the HEAR program (50% of eligible appliance costs). You can stack both programs if you qualify.
Can I get energy rebates if I earn above 150% AMI in Minnesota?
Households above 150% AMI are not eligible for income-based HEAR point-of-sale rebates. However, you may still qualify for: HOMES performance-based rebates (if energy savings targets are met), utility-specific rebates (most have no income limits), and state programs that may have different eligibility criteria.
